Alignment Healthcare has filed a motion to dismiss a whistleblower lawsuit in which a former company executive accused the Medicare-driven health insurer of manipulating its finances to boost its stock price. Shares of the Orange, California-based firm plunged in early July after media reports indicated that ex-employee Hakan Kardes filed the case in a federal court in Santa Ana. Citing a court filing, Bloomberg reported that the company has dismissed the allegations as a case of sour grapes. Alignment said in a statement that a third-party investigation found Kardes' Sarbanes-Oxley whistleblower claims are false and there is no basis for his allegations. The company cited multiple reasons for the dismissal, including that the plaintiff filed whistleblower claims too late, and added that Kardes sued only after realizing that an in-house restructuring initiative didn't roll out as he expected.
Alignment Healthcare LLCCompany moves to dismiss whistleblower lawsuit, citing false claims and untimely filing.
